| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 189.90 | -42 |
| Intrinsic value (DCF) | 257.11 | -22 |
| Graham-Dodd Method | 280.50 | -15 |
| Graham Formula | 620.70 | 89 |
Everest Re Group, Ltd. (LSE: 0U96.L) is a leading global provider of reinsurance and insurance solutions, headquartered in Hamilton, Bermuda. Operating through its Reinsurance Operations and Insurance Operations segments, the company offers a diversified portfolio of property and casualty reinsurance, specialty lines, and commercial insurance products. Everest Re serves clients across the United States, Bermuda, Europe, and other international markets, leveraging a multi-channel distribution network that includes reinsurance brokers, surplus lines brokers, and direct underwriting. With a strong presence in key reinsurance hubs like Bermuda, Ireland, and Singapore, the company provides critical risk transfer solutions, including marine, aviation, liability, and accident & health coverages. Founded in 1973, Everest Re has built a reputation for underwriting discipline and financial strength, supported by its robust capital position and global footprint. The company plays a vital role in the reinsurance sector, helping insurers manage catastrophic and complex risks while delivering consistent returns to shareholders.
Everest Re Group presents a compelling investment case due to its diversified reinsurance and insurance portfolio, strong underwriting profitability, and conservative risk management. The company's global presence and multi-line capabilities position it well to capitalize on hardening reinsurance market conditions. With a market cap of $14.2 billion, diluted EPS of $32.58, and a solid dividend yield, Everest Re offers stability in the volatile reinsurance sector. However, investors should monitor exposure to catastrophic events, interest rate sensitivity in its investment portfolio, and competitive pressures in the reinsurance market. The company's low beta (0.578) suggests relative defensive characteristics compared to broader markets.
Everest Re Group competes in the global reinsurance market by differentiating itself through its balanced portfolio approach, combining property catastrophe reinsurance with specialty lines and insurance operations. The company's competitive advantage stems from its Bermuda domicile (providing capital efficiency), global underwriting platform, and strong relationships with cedents. Everest's dual focus on treaty and facultative reinsurance allows it to tailor solutions while maintaining underwriting discipline. Compared to pure-play reinsurers, Everest's insurance operations provide diversification benefits and additional earnings streams. The company's $17.1 billion in revenue and $1.4 billion net income demonstrate scale advantages in an industry where size and ratings matter. Everest maintains an A+ (Superior) rating from A.M. Best, which is critical for competing on large reinsurance programs. Its $4.96 billion operating cash flow indicates strong premium conversion capabilities. However, Everest faces intense competition from larger European reinsurers in global markets and must continually demonstrate technical underwriting expertise to maintain margins in a cyclical industry.